Microsoft results top estimates but AI capacity constraints remain; stock down
Microsoft (NASDAQ:MSFT) reported fiscal first-quarter results that topped Wall Street estimates, underpinned by strength at its cloud unit, shares in the software titan slipped on a softer current-quarter guidance for the division. Azure, Microsoft's cloud business grew 33%, just above analyst estimates of around 32%. Growth in Azure benefited from 12 points of contribution from AI services, versus 11 points in the prior quarter, equating to roughly $1.5B in quarterly revenue, analysts at RBC Capital Markets estimated in a note.
